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Journal #5

Wow. I can’t believe that it has been over two months since my last journal entry! The summer has really flown by.

Last time, I discussed possible student loan repayment scenarios. And since that time, I’ve stumbled upon a new problem. However, it’s kind of a good problem.

My freelancing gig is officially a full-time operation. I put a lot of thought into it and I need to move on from my current position. The shift sucks, the money sucks, and the internet sucks. Those are my major gripes.

An opportunity came knocking. I let it in.

That’s right, I’ve turned into a professional writer. This makes me a happy manboy. So how does this fit into my debt repayment plan?

Any debt forgiveness, and this includes student loans that have been turned into collections, will be considered income.

Should I take the OG 6k deal from Sallie Mae, my “income” would more than double, bumping me into the next tax bracket and reflecting a shit ton of money that I don’t actually have. Being that this is my first 1099 type job, I think paying my own taxes AND paying taxes on imaginary income is probably not the best way to start my inaugural tax year as a freelancer.

On top of that, as a freelancer who is paying his own taxes, I’ve been advised that I should maximize every deduction that I can get my hands on. So until I get all of this sorted out, my debt repayment plan is on a temporary hold.

I’m not upset. You would think, with this blog being founded on the idea of eliminating all of my debt and creating and increasing my passive income, that I would be in a huge rush to pay these student loans off. I’m beginning to take what I think is a wiser approach. Everything we do has consequences. And by consequences, I mean taxes. I think practicing some patience to see how the dust settles on this while I continue to build passive income streams and chip away at my debt is the best course of action for now.

I mean, shit, they’re in collections already. It’s not like they’re going anywhere. Speaking of passive income, let’s talk about this for a while.

Passive Income

My sources of passive income are as follows: Cash back credit cards Ads on the blog Acorns account

I haven’t been keeping a super watchful eye on these three sources lately. Between the blog and two jobs, my work life balance has been more like work work imbalance. However, the passive income has grown by a small margin. I’m already seeing the powerful sorcery that is investing.

And I like it! I’m coming in between $20-30 a month between the two sources. Now that I have the time to keep a more watchful eye, I’m going to.

Thanks to the writing of zero day finance, I’m going to try credit card hacking with the Discover it card. I don’t do affiliate links here, but if you would like one, head over to his page and use his. You and he will both get $50!

Conclusion

I’m not taking a pay cut. The side-gig and the full-time job combined were making me right around $600 a week before taxes. I’m going to have to grind, but not only do I think I can match it, I think I can beat that figure. Instead of working a few hours at home and then fighting the internet at work all night long to get anything done, I’ll be able to maximize my efficiency at home.

I know the adjustment of going back to the world of the living is going to take a week or two, and that’s fine. I’ve got more money saved at this point than I have in a long time. With the exception of buying groceries, smokes, and beer, I won’t really leave the house.

So there it is. That’s the short version of my life for the last couple of months. It has been a crazy ride and I’m really happy to have all of you along with me.

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Comments

I applaud your realization that transitions require patience. And brace yourself for the taxes thing. But you are good writer with a good work ethic. Build your portfolio and you’ll go far! Congrats on chasing your dreams. Not many do.

Just came across your blog and I’m loving it. I am in a similar kind of boat by the sounds of it and am working hard on solutions to increase my income, even as I consider a 2nd possible career change. Congrats on your persistence and keep pursuing things with faith it will work well, because you have the right attitude!